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NEW: Gov. Patrick Announces Tax Collection Deal With Amazon

Tuesday, December 11, 2012

 

Governor Deval Patrick announced today that Amazon will collect and remit sales tax in Massachusetts beginning next fall. He also announced that the Commonwealth and online giant will work together for the enactment of federal legislation that will resolve sales tax issues by creating an equitable and simple framework for sales tax collection.

"I value the contributions large and small employers alike make to Massachusetts' economic vitality, and this agreement captures that," said Governor Patrick. "We are thankful Amazon was willing to come to the table and we will continue our conversations with them about creating jobs here. This agreement is a win for all sides, and I am pleased it promises to generate millions in long-term revenue for the Commonwealth.”

Amazon vice president of global public policy Paul Misener expressed excitement about the new agreement, and spoke of the need for federal legislation to regulate interstate sales tac collection. Something his company, which sells online to every state in the country, is very familiar with.

"We appreciate Governor Patrick’s commitment to Massachusetts jobs and investment and his support for legislation now before Congress that would provide a final resolution to the sales tax issue,” said Misener. “We look forward to creating hundreds of high tech jobs in Massachusetts and continuing to work with Governor Patrick, state leaders, retailers and Congress to pass federal legislation permitting interstate sales tax collection.  Federal legislation is the only way to level the playing field for all sellers, the only way for states to obtain more than a fraction of the sales tax revenue that is already owed, and the only way to fully protect states’ rights."

The agreement will take effect on November 1, 2013, in time for the next holiday season.

 

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